I had to do an IRA withdraw because of Covid 19 and job loss. I thought you would not get taxed bc of Covid 19

[Mother1949]

I took an early withdrawal from my retirement fund for covid can i claim a taxe break on my state taxes

[DawnC]

Covid-related distributions are exempt from the early withdrawal (10%) penalty on your federal return.   You also have the option to spread the ordinary income tax over three years or to pay all of the tax this year.   But the ordinary income tax on distributions was not waived, only the early withdrawal penalty was waived.    And these rules apply to federal tax returns.

Each state is different.   Some follow the federal guidelines, others do not.   The 1099-R gets entered on your federal return and you can apply the covid-relief if you qualify.  TurboTax will transfer all of the federal information to your state tax return and you can claim any state-specific relief, if applicable, then.  

To see how your state handles these distributions, see your state's Department of Taxation and Revenue website.    @Mother1949

Federal treatment of covid-related distributions